Companies looking to tap into the African Continental Free Trade Area (AfCFTA) must be prepared to invest in careful planning and strategic action, according to trade experts.

During a webinar organised by LIMA Partners on Friday, April 25, Yamani Selana an international trade specialist and Director at Andersen, South Africa warned that the benefits of AfCFTA are not automatic.

“It is not automatic to get the benefits that come with the AfCFTA agreement,” he said.

Selana explained that businesses must actively engage with authorities to prove the origin of their products, either independently or through trusted advisors.

“There are aspects to it which then, you as a business will have to interact with authorities, either by yourself or through your advisors, where you get to register and prove your qualification that indeed your product originates from that region. It is then important to link up with advisors who are familiar with customs or tax authorities,” he said.

He advised that partnering with experts familiar with customs and tax processes is essential for businesses hoping to successfully navigate AfCFTA requirements.

Selana also reminded businesses that despite AfCFTA’s ambition to create a seamless continental market, the sovereignty of individual countries remains a significant factor.

“As much as we are creating one market as a continent, we really have to be mindful of the autonomy of the different jurisdictions. So, one needs to consult with the local experts and advisors in those particular areas,” he added.

He stressed that theoretical knowledge alone is not enough when approaching African markets and warned against relying solely on online research.

“It is important to note that there is the theoretical aspects that can be drafted. But we cannot approach everything with naivety, we still need to note that Africa is a huge continent with different cultures and different orientations.

“So, those who are interested in going and entering each of these countries will have to be mindful that these are distinct economies. This will require that you need to collaborate with locals or advisors in those countries. It is not just about researching the internet,” he explained.